Part of the CustodyStress archive of observed Bitcoin custody incidents
Exchange custody
Cases in this category involve Bitcoin held on exchanges or custodial platforms. The user does not control private keys — access depends on the platform remaining operational and the account remaining accessible.
Exchange custody cases cluster around platform insolvency, account access loss, and regulatory action. Unlike self-custody failures, exchange cases often involve a recoverable path — but one that runs through legal or institutional processes that can take months or years.
512 observed cases
Blocked
135 (26%)
Constrained
181 (35%)
Survives
128 (25%)
Indeterminate
68 (13%)
Following its FinCEN MSB registration in June 2013, Mt.
Exchange custody
Following its FinCEN MSB registration in June 2013, Mt. Gox was required to implement enhanced KYC and AML procedures for US customers. Customers who had previo
Documentation absent — exchange custody (2013)
Exchange custody
GBL Exchange provided investors with no verified corporate registration, no identified principals, and no disclosed custody arrangement for the 9,640 BTC it hel
Institutional lockout — exchange custody (2013)
Exchange custody
Following the Silk Road seizure in October 2013, several Bitcoin exchanges including Bitstamp implemented enhanced screening of incoming BTC for potential Silk
When the SEC questioned Montroll in November 2013 he produced a fabricated screenshot
Exchange custody
Bitfunder's operator provided no audited proof of reserves at any point during the exchange's operation. When the SEC questioned Montroll in November 2013 he pr
Documentation absent — exchange — Japan 2013
Exchange custody
Throughout 2013 Mt. Gox provided no documented breakdown of the gap between customer BTC liabilities and actual wallet holdings. Internal records later revealed
Institutional lockout — exchange custody (2013)
Exchange custody
The SEC issued subpoenas to Bitfunder and other Bitcoin securities platforms in October 2013, demanding information on US users who had traded unregistered secu
Account frozen — exchange custody (2013)
Exchange custody
Following the Silk Road seizure, US law enforcement issued subpoenas to several US Bitcoin exchanges requesting transaction records for customers suspected of u
Institutional lockout — exchange custody (2013)
Exchange custody
Following the PBOC circular of December 2013, Chinese Bitcoin exchanges stopped accepting bank wire deposits. The circular also caused Alipay and other payment
Documentation absent — exchange custody (2013)
Exchange custody
When Vircurex announced its January 2013 hack it provided no technical disclosure of the attack vector, no independent audit of losses, and no timeline for rest
Documentation absent — exchange custody (2013)
Exchange custody
When Bitcoin Rain defaulted in March 2013, operator Leandro Cesar provided no documented accounting of investor funds. He claimed a hack at Mercado Bitcoin had
Passphrase unavailable — exchange 2012
Exchange custody
A user lost access to an exchange account after forgetting the login password. The exchange had no viable account recovery mechanism at the time. The user event
Institutional custody dependency — exchange — United States 2012
Exchange custody
A user's bitcoin held at a US exchange was frozen as part of a broader investigation into the exchange operator's compliance with money transmission regulations
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